Search Inside Bitcoins

Binance.US Calls Off A 1B Deal To Acquire Voyager’s Assets

Binance US references Shiba Inu to celebrate National Puppy Day
Binance US references Shiba Inu to celebrate National Puppy Day

Join Our Telegram channel to stay up to date on breaking news coverage

Binance.US, the American arm of a the major crypto exchange, has terminated a 1 billion deal of purchasing Voyager Digital’s Assets. Voyager has revealed the disappointing news via Twitter, as it is investigating the potential claims against Binance.US. However, Binance.US has blamed its move on the hostile and uncertain regulatory climate in the United States.

Nonetheless, on April 19, Voyager Digital, the Voyager Official Committee of Unsecured Creditors, and the US government agreed on the deal.

Earlier, in March, the lawyers of the US government, including the SEC, sought to block the deal. They argued that some of the assets involved in the transaction, such as Voyager’s VGX token, could constitute unregistered securities—however, the US Department of Justice appealed for Voyager’s bankruptcy plan.

On the other hand, Voyager and the Creditor’s Committee took to Twitter to show their disappointment shortly after Binance.US made the announcements. The Committee noted:

The Committee is incredibly disappointed with this decision and is investigating potential claims against Binance.US.

The deal by Binance.US, initially made in December, allowed the platform to back off unless the deal was consummated within four months. Recently, in a legal filing, the attorneys for Voyager warned that the deal not going through would cost the estate and its creditors an extra $100 million.

The right to back off by Binance.US

The exchange platform, for its part, noted that it had decided to exercise its right to back off the asset purchase management. However, Binance.US’s spokesperson pointed out in a statement:

While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the whole American business community.

However, this move adds another hurdle for the bankrupt crypto lender Voyager. Voyager has been looking to raise funds via an asset sale to repay creditors after it filed for Chapter 11 bankruptcy. Voyager initially agreed to sell its assets to the FTX crypto exchange. However, the deal failed, as FTX imploded in November last year.

To fill the gap, Binance.US stepped in. However, the acquisition was flooded by regulatory opposition.

However, Voyager and the creditor’s Committee noted that it would now work on the “toggle option” of distributing cash and crypto to customers directly through the Voyager platform. It has further asserted that it would provide more information on the next steps and any future actions the customers need to take.

Crypto Community Reaction to Binance.US’s Exit

The change of heart by Binnace.US is still unclear, as it was already familiar with the US regulatory environment. However, various crypto enthusiasts have commented on Twitter concerning the sudden change of events.

StephenEllis-PR tweeted:

I’m surprised Binance lasted as long as it did. I would’ve bailed a long time ago with all the harassment from the government.

On the other hand, Donterw responded to Binance.US, noting,” Really, after you all have our information as customers? So you paid 10M  for us. I say you got a deal on this.

More News:

Wall Street Memes - Next Big Crypto


Wall Street Memes
  • Early Access Presale Live Now
  • Established Community of Stocks & Crypto Traders
  • Featured on BeInCrypto, Bitcoinist, Yahoo Finance
  • Rated Best Crypto to Buy Now In Meme Coin Sector
  • Team Behind OpenSea NFT Collection - Wall St Bulls
  • Tweets Replied to by Elon Musk
Wall Street Memes

Join Our Telegram channel to stay up to date on breaking news coverage

Read next